Debt update- January/ February 

Its payday for me today which means that we had our budget meeting last night. I thought I’d write down all the things that have happened in the last few months with our money to try and see the progress! 
First up confession time… In a time of weakness near the end of last year we booked to go to Florida on holiday. I was fed up with trying to clear our debt and getting nowhere, we’d also been trying unsuccessfully to start a family for a while and just wanted a break. So the long and the short is we agreed to go on this very expensive holiday. Since that point its caused some stress because we don’t have all the money to pay for it and we actually don’t want to increase our credit card or loan debt.

So we sat down to discuss what we wanted to do about it all. At the moment we pay £300 a month to our loan. The idea has always to make overpayments but this never seems to happen. We also had around £200 on a credit card. This was the sum of our debt excluding our mortgage as we said in our original post at the start of January: 12.5k 

After much discussion we’ve reassessed the moneys we hold and where best to use it. I think we have it in our heads that we want to have savings which is all well and good but why have all this debt and savings?! So we’ve decided to wipe out pretty much everything cash wise apart from our emergency and sinking funds. There are still some areas we’re contributing and keeping money in. Both of us have pensions with our companies and we’re continuing with those. Husband also has sharesaves with his company that we put money too every month. This means we still have some long term security. What we’re ‘cashing in’ is my shares options and extra money that we had put in our emergency fund. 

By doing all that it amounted to us having the 2.5k we needed to pay for the rest of our holiday, we were also able to make a January overpayment to the loan of £1600. Now at the end of February we’ve been able to make another overpayment of £350. Including our regular payments that means we’ve paid just over 2.5k to debt and takes us to £9913 left to go. Assuming that we never pay another overpayment them that makes our debt free date December 2019. Far too long away for my liking! 

Now we have been blessed with a few things that make it more and more likely we can make overpayments each month. The first great thing about February and March every year is we don’t pay council tax. That immediately means we have almost £400 that should go straight to debt. The second thing is I’ve been able to increase my hours at work. So instead of 20 hrs per week I now get 32 hrs per week which is amazing. The last thing came happily just a couple of days after NY contract increase and that was a pay increase starting in April. This means that taking my extra hours and extra pay into account that we should be £400 better off each month. Now not all of that can go to debt- we weren’t making enough with me on 20 hrs to really cover everything- but we should be able to pay at least a couple of hundred pounds over each month. 

Last thing (sorry this is such a mammoth post!) is I’ve changed what supermarket we use, altered our meal plan to a healthier one and gone back to making meticulous shopping lists. This meant that I actually stuck to our food budget this month for the first time in a long time.

I’m exceptionally happy that we’re now under 10k debt, it does finally feel like we’re making progress. If everything goes to plan then we should actually be able to hit under 9k debt by this time next month..  We’ll see if that actually pans out though as we’ve been here before and always ended up with more debt…fingers crossed! 

Kimmy x

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Debt Free Arnolds

So upon consideration a blog seemed to be the easiest way to make me accountable and hopefully better at sticking to our budget and working on the garden.

We’re a married couple from Scotland and our aim is to be debt free and then buy land for a homestead. This blog is going to be a combination of our debt free and growing journey. I want to document what we’ve tried when growing our veg and also what went wrong (because I’m sure there will be a lot). I also hope it’ll focus us back on our budget and why we’re not supposed to be spending as that got lost at the end of last year. 

Here’s where we stand at the moment: 

Debt- 12.5k (excluding our mortgage)

We own a house with a reasonable size garden which is where we will be growing all our fruit and veg. The space is an issue- I still want to have a garden so don’t want to rip it all up for growing. Therefore I’m looking for the best ways to provide food for us on a small scale. As we go on you’ll no doubt see that my husband would love to keep bees and chickens just now (and a whole farmyard of animals once we have land) I however am not keen on this idea.

This will be our first full year growing and I’m starting to prepare the ground and the house for planting this week. The current intention is to grow the following:

Potatoes/ onions/ courgettes/ aubergines/ cucamelons/ tomatoes/ garlic/ carrots and incaberries. 

We’ve tried some of these before with varying success and some are totally new to us. We’ve also started what we hope will grow into a larger co-op with another couple. They’re going to provide peas and kale for us and we’ll trade them onions and potatoes! 

I’ve documented some of our successes and failures on our Instagram but feel it’ll help me to have this blog as well. 

We’d love to build a community of people both in Scotland and abroad who can give us hints and tips be spur us on. So if you have any advice then get in touch! 

In terms of our debt we are loosely followibg the Dave Ramsey plan. I know that he would say that means we arent following his plan at all but we’ve had to adapt a lot for the UK. We budget every month and previously did have weekly budget meetings. That had stopped but we’re going to go back to it. Our costs tend to be the same each month so it gdgs boring going over it. We also feel like we just maintain the same level of debt. Anytime we manage to make progress with paying it off something else comes up that we need to spend money on.it does get disheartening. It feels like even when we deny ourselves and stick meticulously to our budget we still don’t get anywhere. 

Anyway that’s our introduction, I’ll be updating as we do things as we do them this year and hopefully get some great produce along the way!